Despite a 71 per cent increase in revenues driven by a sharp rise in the number of real money players, Empire Online\’s shares fell by 33 per cent, after PartyGaming announced it had built a new software platform and would now separate its own players from those directed to its site via “skin sites” such as Empire Poker.
The new operating platform will allow PartyGaming\’s customers to play a range of non-poker games such as Blackjack, as well as place Side Bets on poker tables, all using a single account and a shared purse.
Empire Online\’s Empire Poker website drives customers to PartGaming\’s Party Poker website, but following the acquisition of Noble Poker, it started directing its customers to Noble Poker\’s Playtech system.
PartyGaming responded with a move that marks a clear attempt to reduce its reliance on the likes of Empire Poker, Coral Eurobet, Multipoker and Intertops, for the generation of new customers.
“In essence, today PartyGaming has taken steps to distance itself from its skins,” said Charles Wilson at Bridgewell Securities.
“We believe the skins customers will be disadvantaged, as they will not have access to PartyGaming\’s player liquidity,” he added. “Player liquidity is one of the key customer drivers.”
Paul Leyland at Seymour Pierce said the “skin sites” have sufficient resources to ensure decent tournaments, decent prizes and full tables.
“The key is they\’ve got to build up their own platforms faster than Party can mess up their skins\’ revenues,” he added.
PartyGaming shares finished the day down 11per cent to a new low of 71p.
Sportingbet, which is set to issue its full-year numbers on Wednesday, and 888 also suffered from the Empire share price collapse, and fell 6.7% and 11.3% respectively.
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